tenure offer. Indeed some sellers will not consider entertaining an offer unless it is accompanied by a pre-qualification
or pre-approval letter of some type.
Often clients inquire as to what kind of information will be used to determine a pre-qualification. In most every case verifying income and employment, as well as your ability to meet your monthly financial obligations, is relied upon by a lender or mortgage broker. It should be pointed out that while credit scores are important, they are not the only factor used in this process. Credit worthiness is more than just a number.
Many people have, at one time or another, experienced financial difficulties and hardships. These could have been due to the death of a spouse, divorce, business failure or job lay-off. In a few cases a potential borrower may have had no other option but to file a Chapter #7 or Chapter #13 Bankruptcy. By no means do we encourage anyone taking this drastic step. There are, however, loan programs available for people who find themselves in this type of predicament. The potential borrower should realize that they will not receive the same favorable interest rates or conditions as other clients.
Of course you, the purchaser/borrower, may find a home that the lender says you can afford. A consideration you should make is not just how affordable the house is, but if you will enjoy living there. Who wants to live in a home if they have a large amount of stress as they write that monthly mortgage check? Be certain that your new home is affordable and enjoyable for your family.
You should avoid the mistake of purchasing a home that takes every available penny and leaves you with no discretionary income. Cars, washing machines and other vital household items can and will break down from time to time. Sometimes repair costs for these items can run into the hundreds of dollars. Being "house poor" is not a favorable situation anyone should allow themselves to fall into.
Begin your search by creating a list of needs and wants for you new home. This list will, to a great extent, be dictated by the lifestyle that you and/or your family lead. Once you have adopted a list, decide what items you can live without. It is sometimes difficult to be honest with one's self when considering what you would like in a new residence. A little thought and review, however, could go a long way to insure the enjoyment of your new home.
It would also be advisable to think about where you are in the stages of life. Perhaps you are just starting out with a potential increase in income and the size of your family. Are your children babies, toddlers or teenagers preparing to leave for college? Do you view taking care of a large lawn as a passion or an inconvenience?
This author learned the hard way by purchasing my first home with four large Sweet Gum trees on the lot. Have you ever spent one long weekend picking up those spiny objects the trees seem to shed by the thousands? Fortunately Mother Nature took care of two trees and I, the other two!
We have all heard that real estate is based upon location, location and location. That is why it is vital for you, as a home purchaser, to research, research and research. Establish a list of amenities you would find desirable in potential neighborhood. The U.S. Census Bureau has multitudes of demographic information on neighborhoods and communities across the country.
The local Chamber of Commerce is usually more than willing to provide information about the community you are considering. Because it is made up of business owners from the local area, the Chamber should be able to direct you to shopping and potential entertainment venues. The local municipal government would also be an excellent source of information, not to mention the cost you may incur for trash collection!
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